Page 513 - 2020-21 Budget Summary

GLOSSARY

Function: A group of related budgetary programs across departmental boundaries and aimed at accomplishing a
broad goal or major service. The details are shown in Section 6 of the budget.

Fund: A fiscal entity with revenues and expenditures that are segregated for the purpose of carrying out a specific
purpose or activity.

General Fund: The fund for deposit of general receipts that are not restricted, such as property, sales and business
taxes, and various fees. The General Fund also includes subfunds (primarily by department) to track
appropriations and expenditures.

General Obligation (G.O.) Bond: A type of bond backed by the taxing power without limitation of the City and paid
from an ad valorem levy on property.

Grant: A contribution by a government or other organization to support a particular function.

Harbor Department: The Department that, under its Board of Commissioners, is responsible for the management,
supervision, and control of the Harbor District, operates the Port of Los Angeles, operates a pilotage service, and
engages in the leasing of land and production of oil in the District. It constructs and maintains its own facilities
and controls its own funds in accordance with the City Charter. The budget is independent of the City’s General
Budget and it is included in Section 4 for information purposes only. The budget and supporting data are
available from the Department.

Indirect Cost: The additional costs of human resources benefits, facilities, communications, and liability claims for
authorized positions to perform specific work assignments. The annual budget of those departments that perform
the service provides funding for this cost.

Los Angeles City Employees’ Retirement System: The Department that administers the provisions of the City
Charter relative to the retirement, disability, and death benefits provided for all City employees, except the
uniformed forces of the Fire and Police Departments and the Department of Water and Power. The budget is
independent of the City’s General Budget and it is included in Section 4 for information purposes only. The
budget and supporting data are available from the Department.

Modified Cash Budget: The basis of the general budget recognizing revenues upon receipt and appropriating
planned expenditures and obligations for the fiscal year. Revenue is recognized when cash is received,
regardless of when it is earned, whereas the appropriation is made for the planned operations during the
concerned fiscal year.

Municipal Improvement Corporation of Los Angeles (MICLA): A finance corporation established for the purpose
of lease or “lease purchase” arrangements to finance real property, capital equipment acquisition, or capital
improvements through lease revenue bonds or certificates of participation.

Obligatory Changes: Changes to a program that are required to maintain the current level of effort, including legally
mandated changes.

Program: A group of related budgetary activities performed by a department to accomplish a function for which the
City is responsible.

Property Tax (Ad Valorem): There are two distinct types of property tax levies authorized by State legislation, as
follows: One Percent and General Obligation Bond Debt Service. The County administers the levies as assessor
and tax collector.

469